GOP unable to resolve internal struggles, Trump's tax plan likely to be delayed

 May 12, 2025

Washington’s Republican machine is grinding to a halt. Congressional Republicans, tasked with pushing President Trump’s ambitious tax and spending agenda, are bogged down in internal squabbles, unable to align on critical issues like Medicaid cuts and the state and local tax (SALT) deduction cap.

The Hill reported that with House Speaker Mike Johnson’s Memorial Day deadline looming, the GOP’s disarray threatens to derail the MAGA momentum. Halfway through a crucial four-week sprint, House Republicans are struggling to unify their ranks on Trump’s legislative priorities.

Senate Republicans, watching the chaos unfold, are growing restless, doubting the House can meet its self-imposed timeline.

The lack of an unveiled legislative package only fuels the skepticism. House GOP leaders are wrestling with contentious issues, particularly Medicaid cuts and the SALT deduction cap.

The House Energy and Commerce Committee, responsible for Medicaid, faces a mandate to slash $880 billion, likely through work requirements and stricter eligibility rules. Meanwhile, the SALT cap debate pits fiscal hawks against moderates, with no resolution in sight.

House Committees Face Tough Votes

The House Energy and Commerce Committee plans a pivotal vote Tuesday on its Medicaid package. Proposals include work requirements, frequent registration checks, and barring unauthorized immigrants from benefits—moves that align with conservative values but spark fierce debate.

Speaker Johnson’s claim that reducing enhanced federal Medicaid funding is “off the table” only muddles the waters.

Johnson’s leadership is under strain as he tries to corral hard-line conservatives and vulnerable moderates with a razor-thin House majority.

“We’re still in the consensus-building business,” he told reporters Thursday, a polite way of admitting the GOP is stuck. His optimism feels like whistling past the graveyard when unity remains elusive.

Conflicting signals on Medicaid per capita caps highlight the GOP’s disarray. Johnson called them a “sensitive thing” while Rep. Mike Lawler flatly rejected them, saying, “I do not support per capita caps.” Such public contradictions expose the fractures threatening Trump’s agenda.

The House Ways and Means Committee, overseeing tax policy, is set to mark up its portion of the bill next week. A proposal to raise the SALT deduction cap from $10,000 to $30,000 was floated Thursday, but key Republicans, including the SALT Caucus, shot it down. “It’s a slap in the face,” they declared, demanding better for taxpayers.

Hard-line deficit hawks oppose hiking the SALT cap, citing its hefty price tag. The SALT Caucus’s rejection, led by Reps. Andrew Garbarino and Young Kim underscore the GOP’s inability to compromise. Their insistence on a “pay-for” solution sounds reasonable, but it’s a roadblock in a party allergic to tough choices.

Senate Republicans, meanwhile, are biding their time, skeptical of the House’s Memorial Day deadline. A one-day retreat on Wednesday focused on the reconciliation process, but doubts linger.

Senate Majority Leader John Thune’s “Big Six” meeting with Johnson and Trump officials yielded little clarity.

Memorial Day Deadline Looms Large

Johnson remains bullish, claiming, “The final product is gonna be very favorable.” His confidence is admirable, but he ignores the reality: the GOP’s slim majority and ideological divides make progress glacial. The Memorial Day deadline is less a goal and more a mirage.

The upcoming week is make-or-break for Republicans. Markups in the House Energy and Commerce and Ways and Means Committees will test the GOP’s ability to move forward. Failure to advance risks stalling Trump’s “One Big Beautiful Bill,” as Rep. Elise Stefanik and others warned.

Senate Republicans’ frustration is palpable. Months of skepticism about the House’s timeline are proving justified as the legislative package remains unborn. The Senate’s wait-and-see approach reflects a grim acceptance that the House’s chaos may dictate the pace.

The GOP’s internal battles—conservatives versus moderates, deficit hawks versus tax reformers—are a self-inflicted wound. Trump’s agenda, built on bold promises, demands unity, yet the party seems more interested in navel-gazing. Actions, as always, have consequences.

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